~ An Aussie look at Financial markets-Been in the Biz for over 30 years!

Thursday 20th December – Australian Market Wrap

ASX 200 down 75 to 5506.Afternoon sell off gathers pace as support folds.

High 5588 Low 5506. Volume elevated by option expiry today.

Fed takes centre stage. Global growth concerns resume.

Jobs number hints at problems ahead. Xmas P/T growth only.

Towel gets chucked in. Support went to Xmas lunch.

Banks slip again as miners give up gains too.

Defensives back in favour on risk-off sentiment.

REITs hold up. Telcos in the doghouse.

AUD slightly to 71.00c on Fed and jobs data.

Bitcoin rallying to $3731

Aussie Gold strong at $1753

US futures up 108

Asian markets smashed with Japan down 2.74% and China down 0.96%

STOCKS IN FOCUS

AZJ -3.24% 3 large lines placed at 411c by UBS worth around $740m

BWX -46.69% surprise downgrade issues in US and China.

MPL +3.33% court win against ACCC

DLX -3.13% AGM statement.

NHF +3.34% court win helps.

AGL +2.19% technical buying and defensive quality.

COL +1.95% MTS +2.98% defensive.

SPL +2.95% great VivaGel announcement on royalty deal.

MYO -13.95% takeover bid amended down.

ORE -13.59% Olaroz facility update.

WSA -5.88% results at Mt Alexander.

GTN -38.64% pre-results announcement.

CAT -9.29% broker research.

WBC -1.07% to revamp mortgage broker rewards.

Speculative stock of the day: No standouts.

Biggest Risers – NHF, MPL, SM1, WBA, MTS and SPL

Biggest Fallers – MYO, ORE, GXY, OMH and EHL

TODAY

Sydney Airport (SYD) –1.42% November traffic numbers. Domestic passengers down 1.1% on year to 2.38m, international passengers up 3.5% on year to 3.73m.

BWX Limited (BWX) –46.69% Expects normalised EBITDA for FY19 to be between $27m and $32m. BWX had previously expected normalised EBITDA for FY19 to be broadly consistent with normalised FY18 EBITDA of $40.3m, with a skew to the second half. The revision of guidance is due to softness in domestic export trading sales in China, temporary loss of sales momentum in core US brands, and some recurring Sukin domestic ERP start-up issues in early October.

Downer EDI Limited (DOW) –1.68% Has been selected by the NSW government to build part of the Parramatta Light Rail project in a 50:50 JV with CPB contractors. The contract will generate revenue to DOW of $420m.

Helloworld (HLO) +0.50% Acquires Show Group Enterprises from Avis Budget Group for $7m. The deal is expected to be earnings accretive in FY19 and beyond. Consideration represents an EBITDA multiple of 4.7x 2018.

MYOB (MYO) -13.95% KKR has lowered its takeover proposal 9.8% to 340c per share after undertaking its due diligence. MYO is in a trading halt until 11 am.

Stockland (SGP) +0.81% To sell The Grove residential community in Melbourne to Frasers Property for $202.5m. The sale will result in a gross profit realisation of $75m, to be released over FY19-21.

Starpharma(SPL) +2.95% Has signed a licence with ITF Pharma for its VivaGel to be sold & marketed in the US. SPL is eligible to receive up to $142m in milestones & royalties.